falling into a bear trap, page-55

Hi UT,
Look the media really make it difficult for the younger ones to make an informed view on property...if the media is all they are reliant on...

it is, as if the media are being paid by the banks, to push the idea that interest rates are constantly going up....everyday there is an article somewhere about property, and in the middle of it , the idea that the banks will increase rates...

its rubbish, just feeds the greedy bankers....

in todays business news, there are plenty of retailers in strife, profits are down, forecasts are down....that does not bode well for interest rate rises.....cut off consumer spending, and with it goes confidence....confidence drives the economy, lack of it crucifies the economy..

the idea of retail therapy, as a last resort, for unhappy shoppers....has declined so much so.....
that even retail therapy to get them out of the doldrums....is not working....
its actually a good move, a reality check for consumers....
they may have to actually go and save their money....bide their time, worry about their jobs...
I have no doubt that WA and Qld will recover with the mining, and with plenty of jobs on offer....it will come back quickly...people will be more selective in finding housing, the boom in Perth prices in some areas will be dampened....other areas will increase in prices....

it is not just one big market....the market is split down to a suburb by suburb basis, and then down to street by street level.....
the blanket forecasts by the bulls, of all prices to drop in every location, is just so wrong....

I know of a suburb, it has some good homes in some streets, but in other areas, its like chalk and cheese....the difference in house prices is huge....the bottom of the market lives on one side.....overall that suburb does not have same size of capital growth for the better homes, as another suburb, due to the differences within the suburb. For people just looking for a roof over their heads it is fine.
Other people familiar with the area, would shy away. They are better off finding a house in a suburb that does not have the stark differences, and look for a more evenly balanced neighbourhood, and expect a better capital growth in the short to medium term.
being able top spot the difference between a good investment, and a mediocre one....makes all the difference